Australia’s inflation is now at 7.8 per cent and interest rates have increased to a base rate of 4.1 per cent, putting strain on Australian households.

The Reserve Bank of Australia is expected to increase interest rates next month to combat rising inflation, but experts are concerned this could lead Australia into a recession.

Senior economist at the Australia Institute Matt Grudnoff told Gary Adshead on 6PR Mornings rate rises could cause more damage to the economy.

Press PLAY to hear why Mr Grudnoff is concerned 

“Household spending is starting to feel the weight of the interest rate rise increases and that’s concerning,” said Mr Grudnoff.